0
Distinguish between law of diminishing returns and laws of returns to scale?
Wiki User
∙ 15y ago
The principle of diminishing returns to inputs is when more on one input is added, while other inputs are held constant, the marginal product of the input diminishes. Decreasing returns to scale is when the a firm doubles its inputs, output increases by less than double. With diminishing returns, only one input is being changed while holding the other is fixed. But for decreasing returns, both inputs may change
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
What is the difference between diminishing returns and diseconomies of scale?
The principle of diminishing marginal returns to inputs is when more on one input is added, while other inputs are held constant, the marginal product of the input diminishes. Diseconomies of scale or decreasing returns to scale is when the a firm doubles its inputs, output increases by less than double. With diminishing returns, only one input is being changed while holding the other is fixed. But for decreasing returns, both inputs may change
Difference between returns to scale and constant return to scale?
differentiate between returns to scale and constant return to scale
What is returns to scale in economics?
Returns to scale refer to a special relationship between output and input. During production, this relationship refers to the connection between the changes that occur with the output and those that began in the input.
What describes a situation which there would be decreasing marginal utility?
The Law of Diminishing Returns is one of the powerful laws in economics. The Law of Economies of Scale is another law of similar importance. [And in that order IMHO]
Why law of diminishing returns and return to scale might use in understanding the output decisions of firms in different industries?
show with example that if the marginal product is always decreasing the average product is always above the marginal product?
What is the difference between diminishing returns and diseconomies of scale?
The principle of diminishing marginal returns to inputs is when more on one input is added, while other inputs are held constant, the marginal product of the input diminishes. Diseconomies of scale or decreasing returns to scale is when the a firm doubles its inputs, output increases by less than double. With diminishing returns, only one input is being changed while holding the other is fixed. But for decreasing returns, both inputs may change
Difference between returns to scale and constant return to scale?
differentiate between returns to scale and constant return to scale
Rns to scale?
The principle of diminishing marginal returns to inputs is when more on one input is added, while other inputs are held constant, the marginal product of the input diminishes. Decreasing returns to scale is when the a firm doubles its inputs, output increases by less than double. With diminishing returns, only one input is being changed while holding the other is fixed. But for decreasing returns, both inputs may change
Explain the difference between diminishing return of scale and economies of scale Provide examples if necessary diminishing return of scale?
Diminishing return of scale is a short run concept. It explains the relationship between the rate of output with increaring inputs of production. Economies of scale, on the other hand, explains the relationship between the LR average cost of producing a unit of good with increasing level of output. Diminishing return of scale is a short run concept. It explains the relationship between the rate of output with increaring inputs of production. Economies of scale, on the other hand, explains the relationship between the LR average cost of producing a unit of good with increasing level of output.
What is Decreasing return?
what is the different between diminishing marginal productivity and decreasing return to scale?
What is returns to scale in economics?
Returns to scale refer to a special relationship between output and input. During production, this relationship refers to the connection between the changes that occur with the output and those that began in the input.
What describes a situation which there would be decreasing marginal utility?
The Law of Diminishing Returns is one of the powerful laws in economics. The Law of Economies of Scale is another law of similar importance. [And in that order IMHO]
Law of diminishing returns?
The law of diminishing returns specially applies to agriculture and other extractive industries. One thing that is common to all these industries is the supremacy of nature. It is therefore often remarked that the part that nature plays in production corresponds to diminishing returns and the part which man plays confirms to the law of increasing returns. The reason is that, nature where it is supreme is subject to diminishing returns, while industry where man is supreme, is subject to increasing return. Besides the supremacy of nature, there are several other reasons why agriculture is subject to the law of diminishing returns.The agricultural operations are spread out over a wide area, and supervision cannot be very effective. Scope for the use of specialized machinery is also very limited. Therefore economics of large scale production cannot be reaped.
What are the Types of Returns to scale?
Economies of scale (costs decrease), diseconomies of scale (costs increase), constant returns to scale (costs stay the same)
What has the author Rosalind L Bennett written?
Rosalind L. Bennett has written: 'Indeterminacy with non-separable utility' -- subject(s): Diminishing returns, Economies of scale, Equilibrium (Economics), Mathematical models, Utility theory
Why law of diminishing returns and return to scale might use in understanding the output decisions of firms in different industries?
show with example that if the marginal product is always decreasing the average product is always above the marginal product?
Define constant returns to scale?
My loose definition of constant returns to scale:Constant returns to scale occur when a given increase in output is brought about by the same proportional increase in returns.
